Apprenticeships are a proven way to help people develop in-demand skills and to meet the needs of employers, yet they compose just 0.3 percent of the nation’s workforce; A 2016 report found that 66% of Minnesota businesses said it was difficult for them to find workers with the right skills and experience
The Leveraging and Energizing America’s Apprenticeship Programs (LEAP) Act would provide a tax credit to employers to help increase the number of registered apprenticeships in the U.S.
WASHINGTON, DC – U.S. Senator Amy Klobuchar has cosponsored bipartisan legislation to bridge the skills gap and address youth unemployment. Apprenticeships are a proven way to help people develop in-demand skills and to meet the needs of employers, yet they compose just 0.3 percent of the nation’s workforce. A 2016 report found that 66% of Minnesota businesses said it was difficult for them to find workers with the right skills and experience. The Leveraging and Energizing America’s Apprenticeship Programs (LEAP) Act would provide a tax credit to employers to help increase the number of registered apprenticeships in the U.S.
“Apprenticeships provide workers at all stages of their careers with the opportunity to stay in the labor market, earn a living wage, and gain the skills they need,” Klobuchar said. “Our bipartisan bill would encourage employers to invest in apprenticeship programs that help workers bridge the skills gap and make our workforce and businesses more competitive in the global economy.”
In 2016, in the U.S., there were approximately 505,000 active apprentices in registered apprenticeship programs, including over 11,600 in Minnesota. By contrast, in Germany, nearly 50 percent of all young people go through apprenticeship programs.
The LEAP Act, which was introduced by Senators Cory Booker (D-NJ) and Tim Scott (R-SC), would:
• Offer a federal tax credit for hiring new apprentices that are registered with the U.S. Department of Labor or a state apprenticeship agency.
• Incentivize apprenticeships for workers throughout their careers by offering a tax credit of $1,500 for apprentices under 25 and a tax credit of $1,000 for apprentices over 25.
Klobuchar has long supported efforts to help workers succeed in an increasingly specialized workforce while making the country’s economy more competitive. Earlier this month, she and Senator Susan Collins (R-ME) introduced the bipartisan American Apprenticeship Act, which would provide funding to states for the creation or expansion of tuition assistance programs that benefit participants in pre-apprenticeship and Registered Apprenticeship programs. Last year, Klobuchar successfully pushed for a $5 million grant from the Department of Labor to strengthen partnerships between community colleges and local businesses and expand apprenticeship programs. Klobuchar also helped pass the Workforce Innovation and Opportunity Act in June 2014, which included her bipartisan provision to help match the skills of workers with the needs of local employers. The provision established competitive grants for partnerships that help provide workers with the skills needed to fill vacancies in up-and-coming industries. In 2015, she led bipartisan legislation with Senator John Hoeven (R-ND), the Innovate America Act, which would fund 100 new Science, Technology, Engineering, and Mathematics (STEM)-focused high schools and help ensure workers have the skills they need for today’s competitive global economy.
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